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Imperial Capital

Monitronics acquires LiveWatch Security for $67m

DIY provider LiveWatch diversifies Montronics' offerings

DALLAS—Monitronics has acquired LiveWatch Security, a provider of professionally monitored DIY home security systems, for $67 million.

Canon to buy Axis for $2.8 billion

Kessler: Price is ’50 percent premium over yesterday’s closing price’

TOKYO—One year after buying the leading VMS provider, camera manufacturer Canon has made an offer to buy Axis Communications, the leading network camera provider, for $2.8 billion cash.

Avigilon buys BRS patents, others for $13m

One month after spending $80 on ObjectVideo’s patents, Avigilon ‘tries to lock in IP in a whole range of analytical algorithms’

VANCOUVER, British Columbia—Avigilon today announced it spent $13.3 million acquiring video analytics patents that extend into behavioral recognition, video segmentation and meta-data and more. This deal comes one month after the video surveillance provider spent $80 million to acquire patents from ObjectVideo.

ADT and Google-Nest? No big 'surprise'

Wednesday, January 7, 2015

ADT CEO Naren Gursahaney announced during an interview with Forbes magazine last month that ADT is “working feverishly to develop” a partnership with Google-Nest.

Despite that pronouncement in the national magazine, ADT since has been mum on the potential partnership. It told Security Systems News and other publications that basically, at any given time, it is in regular conversations with a number of tech companies about potential partnerships.

There is nothing to report at this time, an ADT spokeswoman said via email in response to an inquiries from SSN after the Fortune article appeared and then again on Jan. 6.

But Imperial Capital, in a report released Dec. 30, said an ADT-Nest partnership is “not a surprise … especially since Nest has been running its ‘work with Nest’ developer program for connecting its products with other smart-products with some of the same companies as ADT."

“Mercedes Benz, Jawbone, Whirlpool, Logitech and IFTTT are among the growing list of companies with which Nest is integrating. ADT is now working with many ‘new-age,’ cloud based technology companies—several of them overlapping with Nest. ADT needs to show investors that it has the full range of technology and services capabilities ranging from experts in installing the plain old telephone line (POTS) systems, to installers and servicers who have the ‘IT-IQ’ to make ADT into a technology leader in the residential alarm monitoring industry.”

A partnership between ADT and Nest “could open up a significant opportunity for ADT to provide professional monitoring for [Nest’s] Dropcam users (and potentially other DIY products in the coming quarters,” Imperial said in the report.



Infinova gets into DIY

Infinova to pay $87 million to Swann equity holder

MONMOUTH JUNCTION, N.J.—Video surveillance provider Infinova is getting into the DIY market, with planned acquisition of Swann Communications, an Australian company that has offices in the United States.

Anixter to acquire Tri-Ed for $420 million

Anixter gets branch network, 20k dealers, intrusion and fire capability, access to resi and small business sector

GLENVIEW, Ill.—Today, Anixter International announced that it will acquire Tri-Ed for $420 million, so now Tri-Ed, which had aspirations to become a "billion dollar distribution business," will be part of a $1.7 billion security distribution company.

Possible Protection 1 buyers: PE firm, telecom or cableco

Pro 1 is reportedly up for sale with a $1.5b price tag, and an analyst tells SSN having an 'asset of this quality' on the market is unusual

YARMOUTH, Maine—Home security giant Protection 1 is up for sale for more than $1.5 billion, Reuters reported this week. Likely buyers could range from a top private equity firm to a telecom or cableco, an industry analyst told Security Systems News.

Google’s Nest buying Dropcam

The $555 million deal brings Google into the home security market with a DIY product, but what about the privacy of customers’ connected home data?

PALO ALTO, Calif.—First, Google got into home automation early this year with the $3.2 billion buy of smart thermostat and smoke alarm maker Nest Labs. Now, Nest is buying startup Dropcam, which makes video cameras that stream video to a user’s computer or cellphone. The deal gives Google an entrée into home security.

Interface raises $115m

Installations for new retail customer with 8,000+ locations begin this month

ST. LOUIS—Interface Security Systems, an integrator that offers physical security with managed network solutions in a bundled service, has raised $115 million to fund growth that includes adding an important new retail customer.

Google’s Dropcam security push and Apple’s smart home “big play”—should security companies be worried?

Wednesday, May 28, 2014

Recent news reports say that Google may buy startup Dropcam, which makes video cameras that stream video to a user’s computer or cellphone, as a way to get into home security. And The Financial Times has reported that Apple is soon expected to make a “big play” into the smart home, launching a new software platform that will allow users to control security systems and home features such as lights directly from their iPhones.

Should security companies be worried? Not really, according to a report today from Imperial Capital, a New York-based full-service investment bank.

If the Dropcam report turns out to be true, it would mean Google is adding a security component on the heels of its entrance into home automation with its recent $3.2 billion purchase of Nest Labs, maker of smart thermostats and smoke alarms.

But the report, authored by Jeff Kessler, Imperial Capital’s managing director of institutional research, said it doesn’t believe the Dropcam purchase would have a negative impact on security companies or other pure play home automation companies, like Control4.

The reason, it says, is that “security companies generally are not participants in the do-it-yourself (DIY) market and do not target particular groups that may be interested in such products (e.g., college students, young professionals living in high rises).” Also, the report said, although “Dropcam could be a good entry product for those that do not understand or are not familiar with security products, it does not replace the security, home automation, and customer service capabilities which the likes of ADT or Control4 provide, and nor do we believe that it wants to.”

What about the potential Apple smart home/security play?

The report says: “We wonder if Apple will open up its “big play” to allow a broad base of installers, service, and responders to interact with it, or will it be another closed end system, in which the homeowner, or more likely the apartment owner, can check on what is going on at home on an Apple iPhone, and then have the responsibility of “making the call” to police or health responders based on what they have just seen on the iPhone. Another uncertainty is if the police would trust this system, or would law enforcement be more likely to respond to a more familiar source that has verified the same incident.”

The report summarized by saying that while the new developments are exciting and will be particularly attractive to those who don’t own homes, the lack of professional monitoring is a drawback.

“Remember, these monitoring stations (to be accredited) have to show that their average time to make a decision to dispatch or not to dispatch is less that 30-35 seconds, have tremendous redundancy, and can typically be trusted. We simply do not believe that Apple users will get that service.”

In fact, the report says that these DIY products could indirectly help professional security companies by introducing a younger generation to the idea of home security/home automation, which could lead those customers to “potentially switch to a larger, more powerful, and more comprehensive platform in the out years.”, a leading provider of interactive security services, also weighed in to me on the new developments involving Google and Apple.

That Vienna, Va.-based company stressed that security is the backbone of the smart home and noted that professional monitoring is a key differentiator, but said security companies need to make sure homeowners know that.

"The key purchase driver for home automation is security.  We see this in both consumer surveys and purchasing trends," said, in a statement.

Also, said, the announcements "validate the popularity of a growing range of connected devices and services. Security dealers should tap into this underlying consumer demand by aggressively marketing and selling a complete range of connected home technologies with professionally monitored security at its core."